|
|
Five important facts about dependents and exemptionsWhen you prepare to file your tax return, there are two things that will factor into your tax situation: dependents and exemptions.
Here are five important facts the IRS wants you to know about dependents and exemptions before you file your 2009 tax return.
- If someone else claims you as a dependent, you may still be required to file your own tax return. Whether or not you must file a return depends on several factors, including the amount of your unearned, earned or gross income, your marital status, any special taxes you owe and, any advance Earned Income Tax Credit payments you received.
- Exemptions reduce your taxable income. There are two types of exemptions: personal exemptions and exemptions for dependents. For each exemption you can deduct $3,650 on your 2009 tax return. Exemption amounts are reduced for taxpayers whose adjusted gross income is above certain levels, depending on your filing status.
- If you are a dependent, you may not claim an exemption. If someone else – such as your parent – claims you as a dependent, you may not claim your personal exemption on your own tax return.
- Your spouse is never considered your dependent. On a joint return, you may claim one exemption for yourself and one for your spouse. If you’re filing a separate return, you may claim the exemption for your spouse only if they had no gross income, are not filing a joint return, and were not the dependent of another taxpayer.
- Some people cannot be claimed as your dependent. Generally, you may not claim a married person as a dependent if they file a joint return with their spouse. Also, to claim someone as a dependent, that person must be a U.S. citizen, U.S. resident alien, U.S. national or resident of Canada or Mexico for some part of the year. There is an exception to this rule for certain adopted children. See IRS Publication 501, Exemptions, Standard Deduction, and Filing Information for additional tests to determine who can be claimed as a dependent.
For more information on exemptions, dependents and whether or not you or your dependent needs to file a tax return, visit IRS.gov and see IRS Publication 501.
More Tax Planning articles
- Five important tax credits
- A tax credit is a dollar-for-dollar reduction of taxes owed. Some credits are even refundable, which means you might receive a refund rather than owe any taxes at all. Here are five popular tax credits you should consider before filing your 2009...
- What you should know about your child’s investment income
- Parents should be aware of the tax rules that affect their children’s investment income. Here are four facts from the IRS to help parents determine whether the investment income will be taxed at the parents’ rate or the child’s rate. Investment...
- First-time homebuyer credit documentation requirements
- Claiming the First-Time Homebuyer Tax Credit on your 2009 tax return might mean a larger refund but it can seem complex. Are you confused about the documentation requirements? Here are five tips to clarify the documentation requirements....
- The tax advantages of home ownership
- If you own your own home, there are some significant tax advantages that can make the prospect more affordable. As a result of the uncertain economy, the federal government has also recently extended a popular tax credit through June of this year...
- Getting organized at tax time
- During the last month, you’ve probably received a flurry of important tax-related documents in the mail. They serve as a reminder that the deadline for submitting your tax return is looming ahead on April 15. Do you have everything you need?...
- What the COBRA subsidy extension means to you
- Those who have been laid off in the troubled economic climate clearly face many challenges, such as paying their bills and finding new employment. If you are out of work, maintaining your health insurance may be a little easier, however, because...
- Five important facts about your unemployment benefits
- Taxpayers who received unemployment benefits in 2009 are entitled to a special tax break when they file their 2009 federal tax returns. This tax break is part of the American Recovery and Reinvestment Act of 2009. Here are five important facts...
- CPAs answer your tax questions
- Have tax questions? Tune in to our free call ins Are you preparing your own returns? Tune in to one of the following stations or watch these newspapers for the local call in number for your area. As a free public service, The Ohio Society of...
- New homebuyer credit form released
- The IRS released a new form that eligible homebuyers need to claim the first-time homebuyer credit this tax season and announced processing of those tax returns will begin in mid-February. The IRS also announced new documentation requirements to...
- Get the help you need to find the right tax preparer for you
- Choosing a tax preparer can be a critical decision in your financial future. You are legally responsible for what’s on your tax return even if it was prepared by an another individual or firm. The CPA profession is built on the several key...
Back to Tax Planning home
LAST UPDATED 1/7/2010
|
|